Companies Have Found a Big Loophole in the Affordable Care Act

  • May 20, 2013

Major Employers Will be Exploiting a Huge Loophole in the Affordable Care Act

Loophole in Affordable Care Act

Austin, Texas: Throw enough high-powered attorneys together and you will almost always find a loophole to any law or regulation.

According to a recent article in the Wall Street Journal, large companies may have found a loophole in being able to only offer bare-bone health plans under the Affordable Care Act.

The article says that “employers are increasingly recognizing they may be able to avoid certain penalties under the federal health law by offering very limited plans that can lack key benefits such as hospital coverage.”

These companies would only ” cover minimal requirements such as preventive services, but often little more. Some of the plans wouldn’t cover surgery, X-rays or prenatal care at all. Others will be paired with limited packages to cover additional services, for instance, $100 a day for a hospital visit.”

The article goes on to state that’ ” the idea that such plans would be allowable under the law has emerged only recently. Some benefits advisers still feel they could face regulatory uncertainty. The law requires employers with 50 or more workers to offer coverage to their workers or pay a penalty. Many employers and benefits experts have understood the rules to require robust insurance, covering a list of “essential” benefits such as mental-health services and a high percentage of workers’ overall costs. Many employers, particularly in low-wage industries, worry about whether they—or their workers—can afford it.”

“But a close reading of the rules makes it clear that those mandates affect only plans sponsored by insurers that are sold to small businesses and individuals, federal officials confirm.”

So, according to the article, only small business and private individuals will be mandated to get comprehensive insurance.

This is a loophole that many large companies are probably going to take advantage of, in these days of cost-cutting.

Are we going to be back at Square One again with the Affordable Care Act?

What do you think about this — Good business or wrongful thinking?


  • Category: Wellness Programs
  • Tags: ACA, Affordable Care At, loopholes in Affordable Care Act, Obamacare loopholes